Gov. Phil Murphy on Thursday signed Assembly Bill 4134 into law, establishing the New Jersey Secure Choice Savings Program.
The legislation requires employers with 25 or more employees to participate in a retirement savings program administered through automatic payroll deductions, allowing employees of small businesses to save for retirement and take control of their financial futures. Further, employees of businesses of any size would be able to participate in the retirement savings program.
By signing the NJ Secure Choice Savings Program into law, 1.7 million private sector workers who don’t currently have access to a retirement savings option at work will now have the ability to save for retirement out of their regular pay check.
“Saving for retirement is paramount for all employees, but too often, those who work for small businesses don’t have a simple way to set aside these savings,” Murphy in a prepared statement.
The fund will be managed by the New Jersey Secure Choice Savings Board, which will include the State Treasurer, Comptroller and Director of Office Management and Budget, or their respective designees, as well as two public representatives, a business trade organization representative, and a representative on behalf of the enrollees.
“Secure Choice is a public private partnership that creates a commonsense, easy-to-use and affordable retirement savings program for workers currently without a way to save at their jobs,” said AARP’s New Jersey Director of Advocacy Evelyn Liebman. “The program is voluntary for employees, portable and will come with no on-going costs or risks for taxpayers or employers.”
Secure Choice will go a long way toward fixing New Jersey’s retirement security crisis.
“With his pen, Gov. Murphy is putting our state on a solid path toward addressing this retirement savings crisis and ensuring a more secure financial future for all,” Liebman stated.